Ryco settles suit on use of foreign-made steel

CHICAGO  Ryco Inc. and its owners have settled a lawsuit over its use of foreign-produced steel in public works projects, according to Pennsylvania Attorney General Kathleen G. Kane.

McKeesport, Pa.-based Ryco and its owners, Robert Bosco and Thomas Sherry Jr., agreed to pay $429,000 and comply with a seven-year injunction stemming from the charges of violating the states Steel Products Procurement Act.

Principals at the company couldnt be reached for comment regarding the consent decree Dec. 24.

Filed in 2012, the lawsuit alleged that Ryco and affiliated companies owned and operated by the same people from the same McKeesport location used foreign-made steel in public works projects in violation of state law. The state also alleged violations of the Unfair Trade Practices and Consumer Protection Law, and the Pennsylvania Corrupt Organizations Act.

"This settlement sends a strong message that we take our promise to Pennsylvanias workers very seriously," Kane said Dec. 23.

"The use of American-made steel and other products in projects funded by taxpayer dollars helps protect American companies and ... good-paying American jobs," she said, adding that the law was designed to promote and stimulate "an industry that has helped build Pennsylvania and sustain ... families."

According to the civil complaint, the Ryco companies installed foreign steel in public projects across western Pennsylvania, including Indiana University of Pennsylvania, Blairsville-Saltzburg School District and Norwin School District. In addition, Ryco allegedly misled these public entities by falsely certifying compliance with the Steel Products Procurement Act.

The schools paid the Ryco companies about $1.5 million for steel used in taxpayer-supported building projects.

In addition to citing seven entities bearing the Ryco name and Bosco and Thomas Sherry, the states complaint cited Ryco treasurer and secretary Susan E. Sherry and other unnamed principals.